Project; 01.01.2024 – 31.12.2025

EUSDR Priority Area(s): PA 8 Competitiveness of Enterprises

The DRWO4.0 project aims at transforming the forest-based industry across the Danube Region by closing the digital gap between Western Europe and South-eastern EU regions. While some parts of Europe have surged ahead in embracing Industry 4.0 technologies, many geographical areas still struggle to keep pace. DRWO4.0 is here to change that. Recognising the vast potential of the forest-based sector as a driver of sustainable development, DRWO4.0 brings together a dynamic consortium dedicated to fostering innovation, promoting cross-border collaboration, and building institutional capacity throughout the Danube Region. At the heart of the project is the creation of an innovative, adaptable, and scalable Industry 4.0 transformation model designed specifically for the forest-based sector. This model will not only serve as a blueprint for modernising industry practices but also act as a catalyst for economic growth, environmental stewardship, and technological advancement. Through transnational cooperation, DRWO4.0 empowers regions to take collective action on shared challenges and seize new opportunities for development in the digital era.

Objectives: DRWO4.0 project objectives are following:

• Enhance the forest-based industry in the Danube Region through digital transformation in line with Industry 4.0 (I4.0) principles.
• Develop an adaptable, scalable, and replicable I4.0 transformation model for forest-based industries.
• Strengthen institutional capacity and cross-border and cross-sectoral cooperation among Danube Region countries.
• Support SMEs and regional stakeholders by improving innovation, competitiveness, and digital readiness.
• Empower workforce development through training and upskilling in digital technologies and sustainable industry practices.

Need and (expected) impact: The forest-based sector in the Danube Region, while economically and ecologically significant, faces increasing challenges due to digitalisation gaps, aging workforces, fragmented innovation systems, and limited cross-sector cooperation, especially in rural and less-developed areas. SMEs in this sector often struggle to adopt Industry 4.0 technologies due to a lack of tailored support, digital skills, and integrated business models. Education systems across the Region also show insufficient integration of digital and smart forest-based topics, resulting in a skills mismatch between labour market demands and the next generation of workers. Additionally, existing collaboration between academia, businesses, and public institutions remains inconsistent and underdeveloped. DRWO4.0 directly addresses these needs by:

• Creating transnational pilot environments to promote and showcase digital solutions for the forest-based sector.
• Developing and disseminating a replicable I4.0 transformation model, open for all SMEs in the Danube Region.
• Strengthening quadruple-helix collaboration among science, policy, industry and society.
• Supporting education reform by involving universities in the co-creation of digital learning content and material.
• Enhancing cluster and stakeholder networks to promote knowledge exchange and innovation diffusion, especially in rural and forestry-dependent areas.

Expected outcomes include:

• Increased digital maturity and competitiveness of SMEs in the forest-based sector.
• Stronger transnational and cross-border and cross-sectoral collaboration and knowledge transfer across the Danube Region.
• Modernised education and training approaches, strongly promoting digital and interdisciplinary skills.
• Enhanced resilience and sustainability of the forest-based economy in the face of global challenges such as climate change and market disruptions.

Macro-regional dimension: The DRWO4.0 project is expected to have direct or indirect impact on all Danube Region states, either through project activities, transfer of knowledge, or the open-access replication of its transformation model. By addressing shared challenges such as digitalisation of traditional industries, capacity building for SMEs, and innovation in the forest-based sector, DRWO4.0 supports transnational knowledge exchange, policy alignment, and the strengthening of innovation ecosystems at a macro-regional level.

Stakeholders involved: The DRWO4.0 partnership brings together a dynamic and multidisciplinary consortium of 14 project partners and 18 associated strategic partners committed to advancing digital transformation in the forest-based sector. The project involves higher education and research institutions, SMEs, business support organisations (BSOs), and forest-based clustering organisations, each contributing to the development, testing, and dissemination of Industry 4.0 solutions tailored to the needs of the Danube Region.

Budget and Funding: Total project budget is EUR 1 946 560 (the amount of Interreg funds awarded is EUR 1 557 248, while the co-funding contribution of partners amounts EUR 389 312)

Further information:

• https://interreg-danube.eu/projects/drwo40
• https://x.com/DRWO4_0
• https://www.facebook.com/drwo4.0
• https://www.linkedin.com/showcase/drwo4-0/

Contact: Danijela Šarić Bartolović, Competence Centre Ltd for research and development,